Freeport, Penske, USAA Capital price; Toyota holds calls; Municipality Finance offers notes

By Cristal Cody

Tupelo, Miss., June 26 – Corporate activity picked up in the high-grade bond market on Tuesday with new reported issues and other deals being marketed.

Crown Castle International Corp. priced $1 billion of senior secured tower revenue notes.

Freeport LNG sold $600 million of notes following the company’s roadshow held at the start of the month.

Penske Truck Leasing Co., LP and PTL Finance Corp. sold $500 million of five-year senior notes. USAA Capital Corp. placed $400 million of two-year senior notes.

Also on Tuesday, Toyota Motor Credit Corp. held fixed income investor calls in the United States, Europe and Asia for a three-part offering of senior notes registered with the Securities and Exchange Commission, a source said.

The bookrunners are J.P. Morgan Securities LLC, BofA Merrill Lynch and Citigroup Global Markets Inc.

Coming up on Wednesday, Municipality Finance PLC plans to price a $1 billion “no grow” Rule 144A and Regulation S offering of three-year notes. The notes were initially talked to price in the mid-swaps plus 5 basis points area, a source said.

About $15 billion to $20 billion of supply is expected by market sources for the week.

In the secondary market, new issues priced last week were mixed.

Bayer AG’s notes traded mostly flat to softer on Tuesday.

Walmart Inc.’s notes were flat to better.

The Markit CDX North American Investment Grade 30 index improved about 1 bp to end the day at a spread of 66 bps.

Crown Castle brings $1 billion

Crown Castle International (Baa3/BBB-/BBB-) indirect subsidiaries sold $1 billion of senior secured tower revenue notes in a Rule 144A and Regulation S transaction on Tuesday, according to a news release.

Crown Castle priced $250 million of notes with an expected life of five years and a final maturity of July 2043 at par to yield 3.72%.

The company sold $750 million of notes with an expected life of 10 years and a final maturity of July 2048 at par to yield 4.241%.

Houston-based Crown Castle provides shared wireless infrastructure to wireless carriers.

Freeport prints $600 million

Freeport (/expected BBB-/expected BBB-) priced $600 million of 5.55% notes due March 31, 2039 on Tuesday at a spread of 265 basis points over Treasuries, according to a market source.

The notes were guided to price in the Treasuries plus 262.5 bps area.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, MUFG and SMBC Nikko Securities America, Inc. were the arrangers.

Freeport held a June 4-8 roadshow for the Rule 144A offering of notes.

The natural gas liquification and export company is based in Houston, Texas.

Penske sells notes

Penske Truck Leasing and PTL Finance priced $500 million of 4.125% senior notes due Aug. 1, 2023 (Baa2/BBB/BBB+) on top of guidance at a spread of 137.5 bps over Treasuries on Tuesday, according to a market source.

BofA Merrill Lynch, Fifth Third Securities, Inc., J.P. Morgan Securities, Mizuho Securities USA LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay debt and for general corporate purposes.

The global transportation services provider is based in Reading, Pa.

USAA Capital prices

USAA Capital sold $400 million of 3% two-year senior notes (Aa1/AA/) on Tuesday at a spread of 53 bps over Treasuries, according to a market source.

The notes were initially talked to price with a spread in the Treasuries plus 65 bps area with guidance later tightened to the Treasuries plus 55 bps area, plus or minus 2 bps.

Citigroup Global Markets, Deutsche Bank Securities Inc. and USB Securities LLC were the bookrunners.

USAA Capital is a San Antonio, Texas-based financial services company.

Bayer flat to softer

Bayer’s 3.875% notes due Dec. 15, 2023 softened 3 bps during the session to 121 bps bid, a market source said.

The notes were seen about 1 bp weaker on Monday.

Bayer sold $2.25 billion of the five-year notes on June 18 at a spread of 115 bps over Treasuries.

The company’s 4.375% notes due Dec. 15, 2028 were unchanged on the day at 158 bps bps bid.

Bayer sold $3.5 billion of the notes in the June 18 offering at a spread of 155 bps over Treasuries.

The health care and agriculture products company is based in Leverkusen, Germany.

Walmart mixed

Walmart’s 3.40% notes due June 26, 2023 tightened another 2 bps to 58 bps bid on Tuesday, a market source said.

The notes traded about 1 bp better in the previous session.

The company sold $2.75 billion of the notes on Wednesday at a 60 bps spread over Treasuries.

Walmart’s $2.75 billion of 3.70% notes due June 26, 2028 headed out unchanged at 77 bps bid.

The notes priced with a Treasuries plus 80 bps spread.

The discount retailer is based in Bentonville, Ark.

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